-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, NynLDOXK64SsBJJMt57ZrW7emXuEmPBuBRl+s9zD1uGUkq1j5kelFujMOl6wq39r eqgPJ1QTpkHJ7/Kj4Y1e5g== 0000921749-94-000033.txt : 19940712 0000921749-94-000033.hdr.sgml : 19940712 ACCESSION NUMBER: 0000921749-94-000033 CONFORMED SUBMISSION TYPE: DEFC14A PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19940711 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: DYNATECH CORP CENTRAL INDEX KEY: 0000030841 STANDARD INDUSTRIAL CLASSIFICATION: 3577 IRS NUMBER: 042258582 STATE OF INCORPORATION: MA FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: DEFC14A SEC ACT: 1934 Act SEC FILE NUMBER: 000-07438 FILM NUMBER: 94538465 BUSINESS ADDRESS: STREET 1: 3 NEW ENGLAND EXECUTIVE PARK CITY: BURLINGTON STATE: MA ZIP: 01803-5087 BUSINESS PHONE: 6172726100 MAIL ADDRESS: STREET 1: 3 NEW ENGLAND EXECUTIVE PARK CITY: BURLINGTON STATE: MA ZIP: 01803-5087 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: SC FUNDAMENTAL INC CENTRAL INDEX KEY: 0000919094 STANDARD INDUSTRIAL CLASSIFICATION: 0000 IRS NUMBER: 133563937 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: DEFC14A BUSINESS ADDRESS: STREET 1: 712 5TH AVE 19TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10019 BUSINESS PHONE: 2129573500 MAIL ADDRESS: STREET 1: 712 5TH AVENUE 19TH FL STREET 2: 712 5TH AVENUE 19TH FL CITY: NEW YORK STATE: NY ZIP: 10019 DEFC14A 1 SCHEDULE 14A Information Required in Proxy Statement SCHEDULE 14A INFORMATION Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934 (Amendment No. ) Filed by the Registrant [ ] Filed by a party other than the Registrant [X] Check the appropriate box: [ ] Preliminary Proxy Statement [ ] Definitive Proxy Statement [x] Definitive Additional Materials [ ] Soliciting Material Pursuant to section 241.14a-11(c) or section 240.14a-12 DYNATECH CORPORATION (Name of Registrant as Specified In Its Charter) SC FUNDAMENTAL INC., THE SC FUNDAMENTAL VALUE FUND, L.P., SC FUNDAMENTAL VALUE BVI, INC., SC-BVI PARTNERS, SC FUNDAMENTAL VALUE BVI, LTD., GARY N. SIEGLER AND PETER M. COLLERY (Name of Person(s) Filing Proxy Statement) Payment of Filing Fee (Check the appropriate box): [ ] $125 per Exchange Act Rules 0-11(c)(1)(ii), 14a-6(i)(1), or14a-6(i)(2). [ ] $500 per each party to the controversy pursuant to Exchange Act Rule 14a-6(i)(3). [ ] Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11. 1) Title of each class of securities to which transaction applies: ______________________________________________________________ 2) Aggregate number of securities to which transaction applies: ______________________________________________________________ 3) Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11: ______________________________________________________________ 4) Proposed maximum aggregate value of transaction: ______________________________________________________________ [FN] Set forth the amount on which the filing fee is calculated and state how it was determined. [ ] Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing. 1) Amount Previously Paid _________________________________________________ 2) Form, Schedule or Registration Statement No.: _________________________________________________ 3) Filing Party: _________________________________________________ 4) Date Filed: _________________________________________________ DYNATECH STOCKHOLDERS COMMITTEE 19th Floor 712 Fifth Avenue New York, NY 10022 July 11, 1994 Dear Fellow Dynatech Stockholder: You may have recently received a letter from Dynatech Corporation regarding our nomination of three candidates as directors of the Company. In deciding how you wish to vote on this important matter, we would like to ask that you consider several factors: 1. THE COMPANY'S ATTACKS ON OUR COMMITTEE AND ITS NOMINEES SHOULD NOT DISTRACT YOUR ATTENTION FROM THE COMPANY'S ABYSMAL PERFORMANCE IN RECENT YEARS. Two of the Committee's nominees, Messrs. Siegler and Collery, founded the SC Fundamental Value Fund, an investment partnership, in June of 1990. Since that time, the fund has made hundreds of investments and has never before conducted a proxy fight. The fund, along with an affiliate, SC Fundamental Value BVI, Ltd. (together "the Funds") originally began purchasing Dynatech shares at $22.625 in October of 1993 in the belief that the Company had attractive businesses and a stronger cash flow than was indicated by its reported earnings. Shortly before this initial investment, Dynatech reported quarterly earnings which were well below both analysts' expectations and the results in the same quarter a year earlier. The same thing happened in January of 1994, and again in May of 1994 when Dynatech announced a $38 million quarterly loss; its first quarterly loss in 23 years. It was only after this sorry performance that the Funds began to consider actions designed to preserve the value of their investment. Ultimately, they determined to commence the proxy contest. With respect to the Funds, their net assets currently approximate $270 million. An investment of $100,000 in the SC Fundamental Value Fund at its inception on June 1, 1990 would have grown to more than $284,000 at June 30, 1994 which represents a compounded annual rate of return in excess of 30%, and which greatly exceeds the return which would have been realized on an investment in Dynatech shares over the same period. (Rate of return calculations are pre-tax and assume that investors neither added to, or reduced, their investments during the period in question.) 2. IS YOUR COMPANY INTERESTED IN YOUR OPINION? Our Committee will propose a non-binding resolution for consideration by all stockholders which asks Dynatech's Board to hire an investment banker to value Dynatech and subsequently sell or restructure the Company. In recently prepared proxy materials, Dynatech has implied that under Massachusetts law it may be able to deny you the right to vote on this resolution. Even if this is true, which we doubt, we wonder, why would the Company want to use a technicality to deny its owners the right to express their opinion on this crucial question? 3. WHY SHOULD YOU VOTE TO RE-ELECT INCUMBENTS TO A BOARD COMPOSED OF DIRECTORS WHO EITHER OWN VERY LITTLE COMPANY STOCK, OR ARE SELLING WHAT THEY DO OWN? The only two directors of Dynatech to own more than 0.2% of the Company's outstanding shares are Messrs. Warren Rohsenow and J.P. Barger, its co-founders and longest- serving directors. Over the last two years, Mr. Rohsenow has sold 48,600 shares of Dynatech stock, while Mr. Barger has sold more than 125,000 shares including 10,000 shares sold as recently as June 14-15 of this year. Neither director bought a single share during the entire period. On May 2, Mr. Barger filed a Form 144 with the Securities and Exchange Commission in which he proposed to sell 100,000 shares of Dynatech stock. Only 45,000 of these shares are included in Mr. Barger's sales described above. Total purchases by all nine members of the Company's Board over the last two years amount to only 3,690 shares. Messrs. Rohsenow and Barger are the only two Dynatech directors with substantial stock holdings and have been associated with the Company since its inception. Does it make sense to maintain the Board's status quo even as these directors reduce their financial commitment to Dynatech? 4. MEMBERS OF THE COMMITTEE IN AGGREGATE OWN A TOTAL OF 887,300 DYNATECH SHARES. THEIR INTERESTS AS STOCKHOLDERS ARE THE SAME AS YOURS. The Committee's nominees for director are employees of, managers of, and/or investors in the Funds. The Funds collectively own 887,300 shares or 9.5% of Dynatech. The nominees are committed to achieving the highest possible value for Dynatech's shares in the near term. We request that you vote to give them the chance. YOUR VOTE IS IMPORTANT REGARDLESS OF HOW MANY SHARES YOU OWN. Please sign, date and return the BLUE proxy card which you should have received in the mail, even if you previously signed the white card provided by the Company. Only your most recently dated card counts. If you have not received a BLUE card, or if you have any questions about the Committee and its nominees, please feel free to contact Georgeson & Co. toll-free at (800) 223-2064. Banks and brokers call (212) 440-9800 (collect). Sincerely, The Dynatech Stockholders Committee -----END PRIVACY-ENHANCED MESSAGE-----